Controversial project passed Bundestag decides Supply Chain Act

Status: 11.06.2021 11:58 a.m.

In the future, large German companies will have to pay more attention to compliance with human rights and environmental standards by their suppliers – otherwise they face fines. The opposition criticized the Bundestag resolution. The Bundestag has passed the Supply Chain Act, which makes large companies more responsible than before for conditions at their global suppliers. 412 MPs voted for the law, 159 voted against it and 59 abstained. During the final deliberations in parliament, the Greens announced that they would vote with the government factions of the CDU / CSU and SPD. The FDP and AfD spoke out against it, the left wanted to abstain. The controversial project had been wrestled for a long time.

There is a risk of fines of two percent of sales

From 2023, large companies in Germany will be obliged to take action against human rights violations and environmental violations at their suppliers. Failure to do so can result in fines of up to two percent of annual sales. It initially applies to corporations with more than 3000 employees. According to the coalition, there are more than 925 companies. From 2024, companies with more than 1000 employees are also to be included, which would be around 4800 companies.

“Children belong in schools and not in mines”

Federal Labor Minister Hubertus Heil (SPD) said that politics must take action against child labor. “Children belong in schools and not in mines,” he said. Around 160 million children are currently working around the world, half of them in particularly dangerous conditions. That is why we need clear standards.

For Development Aid Minister Müller it is “the most important law for more justice between rich and poor”. Image: dpa Development Aid Minister Gerd Müller (CSU) said the law was “certainly the most important law for more justice between rich and poor”. He emphasized that it came about against strong lobby pressure. In the interests of business, the Union had enforced that there is no additional civil liability for companies. Corporations would have legal and planning security, so representatives of the Union parliamentary group.

AfD: Law harms German economy

The FDP and AfD, however, accused the regulation of harming the German economy. The AfD criticized that competitors of German companies were the winners of the law. Greens and leftists welcomed the law as a first step, but criticized it as inadequate. The left argued that because there was no civil liability, the law was too weak and made too few companies accountable.

Supply Chain Act What Bangladesh workers hope for

Status: 11.06.2021 11:59 a.m.

With the supply chain law, textile workers in Bangladesh now expect concrete improvements in their job conditions – in an industry for which millions of people work. Peter Hornung, ARD studio South Asia Anju Begum expects a lot from the German supply chain law. “ Once this law is in place, we will be able to take maternity leave with financial benefits, including overtime pay and other facilities, “she says.” We want this law to be implemented. ” Begum is a brave woman. She is 57 and has been working in a textile factory called Jesus Fashion Limited in Bangladesh’s capital Dhaka for twelve years. She has been elected head of the works council several times, most recently three months ago.

“Always threatened with dismissal”

“We are facing a lot of difficulties,” says Anju Begum. “The factory doesn’t have enough work. That’s why we’re always threatened with firing. The management has repeatedly postponed our demands and unsolved problems.” Now the workforce is exerting pressure on the factory owner through the trade unions – which is now also having an effect. The head of the works council was actually able to achieve a lot for the workers: clean drinking water, functioning fans so that work is bearable even now in the heat, and emergency exits that are no longer blocked as they used to be. But there are many things that are not so easy to enforce. Anju believes that the fact that there is now a lever that can be used with German customers changes a lot.

Most of the time women work in the factories

“Once this law is in place, we will be able to share our complaints with buyers when they visit,” she says. “You will also find out that we have been informed of the new law.” Four and a half million people work in Bangladesh’s clothing industry, most of them women. The collapse of the Rana Plaza building eight years ago highlighted the conditions in the textile factories. More than 1100 people were killed at that time. The German Society for International Cooperation (GIZ) says that things have improved a lot since then. There are new laws that are also being enforced. Nevertheless, the country still lags behind international standards in many ways. And that’s why the new German law is raising high hopes in Bangladesh – including Kalpona Akter, one of the country’s best-known worker activists.

New possibility of lawsuits

“ A supply chain law like this is really necessary in order to really hold companies accountable, “says Akter.” For us as a union, there is currently no way of holding German companies responsible. With such a law, we could also sue companies in Germany. That would be very, very helpful and would open a new window for the protection of the workers. ” However, the factory owners are much less enthusiastic, but they do not want to speak in front of the microphone. In conversation with the ARD – Studio South Asia says a manager that he is anything but comfortable with the new law – precisely because the possibilities for legal action for the workers’ representatives would be significantly expanded. In addition, it is to be feared that German customers will now put increased pressure on them.